Method and system for geofencing

ABSTRACT

A method for initiating a time- and geographic-based electronic transaction includes: storing, in a mobile computing device, payment details associated with a transaction account; receiving a payment zone notification upon entry of the mobile computing device into a predefined geographic area, the notification including payment terms; registering a first timestamp upon receipt of the notification; displaying the payment terms; receiving an indication of approval of the payment terms; receiving an exit notification upon exit of the mobile computing device from the predefined geographic area; registering a second timestamp upon receipt of the exit notification; calculating a transaction amount based on an elapsed amount of time between the first timestamp and the second timestamp and a payment rate; and transmitting the calculated transaction amount and payment details.

FIELD

The present disclosure relates to the use of geofencing in conjunctionwith a transaction, specifically the use of geofences to demarcatepayment zones and use thereof in initiating time- and geographic-basedelectronic transactions.

BACKGROUND

Consumers engage in electronic payment transactions for a wide varietyof goods and services. One such product that may be purchased byconsumers is access to a geographic location. For instance, musicfestivals, museums, concerts, sporting events, and other similar eventsand/or venues often will charge a consumer for entry. In some cases, aconsumer may be charged not for access to an indicated geographiclocation itself, but rather for access to a good or service inside ofthat geographic location. For example, an amusement park may charge theconsumer upon entry into the park, and perhaps additionally for theability to ride the rides inside of the park. The same may be true ofaccessing national parks and the like. In many instances, consumers arecharged a one-time fee to be paid prior to entry.

However, in many instances it may be more profitable for a merchant tocharge a consumer based on a length of time to which the consumer isprovided access to a location or a service located therein. For manyconsumers, it may also be more cost-effective to only pay for as long asthey are in the geographic location or are using the purchased service.As a result, it may be beneficial for both merchants and consumers topay for access based not only on location, but also on time.

However, it may be exceedingly difficult for a merchant to keep track ofthe time duration when a consumer is inside of a geolocation,particularly in instances where there may be hundreds or thousands ofconsumers coming and going at any given time, such as with an amusementpark, music festival, museum, etc. In such instances, the merchant mustbe able to individually identify each consumer as they both enter andexit the geographic location, must determine the cost of the access whenthe consumer exits, and must receive payment details from the consumerat some point during the process to be able to initiate thecorresponding payment transaction. Such a system is often utilized forparking structures, where a consumer is charged based on a length oftime that their vehicle is parked inside the structure or area.Similarly, mass transit systems track ridership, not generally by timebut by length of travel between stops.

Unfortunately, such systems are often unsuitable for locations andservices where a large number of consumers may enter and/or exit at thesame time, such as for an amusement park or concert, particularly whenthe boundary is porous to human traffic. In addition, such systems oftenrequire several computing systems and associated infrastructure, whichmay be expensive for a merchant and also difficult to install inexisting areas. Furthermore, such systems may also be inefficient ininstances where multiple payment zones may be desired, such as whereseparate fees may be charged for different areas of an amusement park ormuseum, or where a smaller payment zone may be placed within a largerpayment zone, such as a VIP area at a concert. Conventional systemsoften require a great deal of hardware in computing systems, gates,readers of one kind or another at gates, distribution systems fortickets or the like, etc.

Thus, there is a need for a technical solution where a consumer can beefficiently charged for access to one or more payment zones based on alength of time inside the payment zone that is suitable for use ininstances where a significant number of consumers may be entering orexiting the payment zone.

SUMMARY

The present disclosure provides a description of systems and methods forinitiating a time- and geographic-based electronic transaction.

A method for initiating a time- and geographic-based electronictransaction includes: storing, in a memory of a mobile computing device,payment details, wherein the payment details comprises a structured dataset including data associated with a transaction account suitable foruse in funding an electronic transaction; receiving, by a receivingdevice of the mobile computing device, a first data signal superimposedwith a payment zone notification, wherein the first data signal isreceived upon entry of the mobile computing device into a predefinedgeographic area and where the payment zone notification includes atleast payment terms; registering, by a timing module of the mobilecomputing device, a first timestamp upon receipt of the first datasignal; displaying, on a display device of the mobile computing device,at least the payment terms included in the payment zone notification;receiving, by an input device of the mobile computing device, anindication of approval of the payment terms; receiving, by the receivingdevice of the mobile computing device, a second data signal superimposedwith an exit notification, wherein the second data signal is receivedupon exit of the mobile computing device from the predefined geographicarea; registering, by the timing module of the mobile computing device,a second timestamp upon receipt of the second data signal; calculating,by a calculation module of the mobile computing device, a transactionamount based on at least an elapsed amount of time between the firsttimestamp and the second timestamp and a payment rate; andelectronically transmitting, by a transmitting device of the mobilecomputing device, a third data signal superimposed with at least thecalculated transaction amount and payment details.

A system for initiating a time- and geographic-based electronictransaction includes: a transmitting device of a mobile computingdevice; a calculation module of the mobile computing device; a memory ofthe mobile computing device configured to store payment details, whereinthe payment details comprises a structured data set including dataassociated with a transaction account suitable for use in funding anelectronic transaction; a receiving device of the mobile computingdevice configured to receive a first data signal superimposed with apayment zone notification, wherein the first data signal is receivedupon entry of the mobile computing device into a predefined geographicarea and where the payment zone notification includes at least paymentterms; a timing module of the mobile computing device configured toregister a first timestamp upon receipt of the first data signal; adisplay device of the mobile computing device configured to display atleast the payment terms included in the payment zone notification; andan input device of the mobile computing device configured to receive anindication of approval of the payment terms. The receiving device of themobile computing device is further configured to receive a second datasignal superimposed with an exit notification, wherein the second datasignal is received upon exit of the mobile computing device from thepredefined geographic area. The timing module of the mobile computingdevice is further configured to register a second timestamp upon receiptof the second data signal. The calculation module of the mobilecomputing device is configured to calculate a transaction amount basedon at least an elapsed amount of time between the first timestamp andthe second timestamp and a payment rate. The transmitting device of themobile computing device is configured to electronically transmit a thirddata signal superimposed with at least the calculated transaction amountand payment details.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

The scope of the present disclosure is best understood from thefollowing detailed description of exemplary embodiments when read inconjunction with the accompanying drawings. Included in the drawings arethe following figures:

FIG. 1 is a block diagram illustrating a high level system architecturefor processing time- and location-based transactions associated withgeofenced payment zones in accordance with exemplary embodiments.

FIG. 2 is a block diagram illustrating the mobile computing device ofFIG. 1 for the initiating of time- and location-based transactions inaccordance with exemplary embodiments.

FIGS. 3A and 3B are a flow diagram illustrating a process for initiatinga time- and location-based transaction based on consumer access to ageofenced payment zone in accordance with exemplary embodiments.

FIG. 4 is a diagram illustrating consumer access to a plurality ofpayment zones and charging thereof using the system of FIG. 1 inaccordance with exemplary embodiments.

FIG. 5 is a flow chart illustrating an exemplary method for submittingdata captured in a transaction message to a blockchain in accordancewith exemplary embodiments.

FIG. 6 is a flow diagram illustrating the processing of a paymenttransaction in accordance with exemplary embodiments.

FIG. 7 is a block diagram illustrating a computer system architecture inaccordance with exemplary embodiments.

Further areas of applicability of the present disclosure will becomeapparent from the detailed description provided hereinafter. It shouldbe understood that the detailed description of exemplary embodiments areintended for illustration purposes only and are, therefore, not intendedto necessarily limit the scope of the disclosure.

DETAILED DESCRIPTION

Glossary of Terms

Payment Network—A system or network used for the transfer of money viathe use of cash-substitutes for thousands, millions, and even billionsof transactions during a given period. Payment networks may use avariety of different protocols and procedures in order to process thetransfer of money for various types of transactions. Transactions thatmay be performed via a payment network may include product or servicepurchases, credit purchases, debit transactions, fund transfers, accountwithdrawals, etc. Payment networks may be configured to performtransactions via cash-substitutes, which may include payment cards,letters of credit, checks, transaction accounts, etc. Examples ofnetworks or systems configured to perform as payment networks includethose operated by MasterCard®, VISA®, Discover®, American Express®,PayPal®, etc. Use of the term “payment network” herein may refer to boththe payment network as an entity, and the physical payment network, suchas the equipment, hardware, and software comprising the payment network.

Payment Rails—Infrastructure associated with a payment network used inthe processing of payment transactions and the communication oftransaction messages and other similar data between the payment networkand other entities interconnected with the payment network that handlesthousands, millions, and even billions of transactions during a givenperiod. The payment rails may be comprised of the hardware used toestablish the payment network and the interconnections between thepayment network and other associated entities, such as financialinstitutions, gateway processors, etc. In some instances, payment railsmay also be affected by software, such as via special programming of thecommunication hardware and devices that comprise the payment rails. Forexample, the payment rails may include specifically configured computingdevices that are specially configured for the routing of transactionmessages, which may be specially formatted data messages that areelectronically transmitted via the payment rails, as discussed in moredetail below.

Transaction Account—A financial account that may be used to fund atransaction, such as a checking account, savings account, creditaccount, virtual payment account, etc. A transaction account may beassociated with a consumer, which may be any suitable type of entityassociated with a payment account, which may include a person, family,company, corporation, governmental entity, etc. In some instances, atransaction account may be virtual, such as those accounts operated byPayPal®, etc.

Merchant—An entity that provides products (e.g., goods and/or services)for purchase by another entity, such as a consumer or another merchant.A merchant may be a consumer, a retailer, a wholesaler, a manufacturer,or any other type of entity that may provide products for purchase aswill be apparent to persons having skill in the relevant art. In someinstances, a merchant may have special knowledge in the goods and/orservices provided for purchase. In other instances, a merchant may nothave or require any special knowledge in offered products. In someembodiments, an entity involved in a single transaction may beconsidered a merchant. In some instances, as used herein, the term“merchant” may refer to an apparatus or device of a merchant entity.

Issuer—An entity that establishes (e.g., opens) a letter or line ofcredit in favor of a beneficiary, and honors drafts drawn by thebeneficiary against the amount specified in the letter or line ofcredit. In many instances, the issuer may be a bank or other financialinstitution authorized to open lines of credit. In some instances, anyentity that may extend a line of credit to a beneficiary may beconsidered an issuer. The line of credit opened by the issuer may berepresented in the form of a payment account, and may be drawn on by thebeneficiary via the use of a payment card. An issuer may also offeradditional types of payment accounts to consumers as will be apparent topersons having skill in the relevant art, such as debit accounts,prepaid accounts, electronic wallet accounts, savings accounts, checkingaccounts, etc., and may provide consumers with physical or non-physicalmeans for accessing and/or utilizing such an account, such as debitcards, prepaid cards, automated teller machine cards, electronicwallets, checks, etc.

Acquirer—An entity that may process payment card transactions on behalfof a merchant. The acquirer may be a bank or other financial institutionauthorized to process payment card transactions on a merchant's behalf.In many instances, the acquirer may open a line of credit with themerchant acting as a beneficiary. The acquirer may exchange funds withan issuer in instances where a consumer, which may be a beneficiary to aline of credit offered by the issuer, transacts via a payment card witha merchant that is represented by the acquirer.

System for Time- and Location-Based Transactions Using Geofences

FIG. 1 illustrates a system 100 for the initiation and processing ofelectronic payment transactions that are based on time accessing ageofenced payment zone by a consumer.

The system 100 may include a mobile computing device 102. The mobilecomputing device 102, discussed in more detail below, may be configuredto measure a length of time during which an associated consumer 104accesses a payment zone 106 and to initiate a payment transaction foraccess to the payment zone 106 based on the measured length of time. Themobile computing device 102 may be any type of mobile device suitablefor performing the functions discussed herein, such as a cellular phone,smart phone, tablet computer, laptop computer, smart watch, wearablecomputing device, implantable computing device, etc. The paymenttransaction may be funded via a transaction account issued to theassociated consumer 104 by an issuing financial institution, such as anissuing bank. As part of the issuing of the transaction account to theconsumer 104, an issuer system 110 of the issuing financial institutionmay issue payment details for the transaction account to the mobilecomputing device 102. Methods suitable for the provisioning of paymentdetails to a mobile computing device 102 will be apparent to personshaving skill in the relevant art. The payment details may include atleast a primary account number and any other data suitable for use inconducting a payment transaction funded via the associated transactionaccount, such as a transaction counter, one or more cryptograms, etc.

The consumer 104 may take the mobile computing device 102 into a paymentzone 106 associated with a merchant system 108. The payment zone 106 maybe a geofenced area, which may be an area defined by a geographiclocation. In some instances, the geofenced area may be associated with avisible physical area, such as a building or a fenced area, or the rangeof a wireless signal, such as various types of cellular, WiFi,BlueTooth, or other type of signal protocols, or mixtures thereof, thathave a defined range at a predetermined signal strength wherein theouter boundary of the range can be made to match a desired geographic,virtual fence or area by controlling transmission power, selectivelyplacing antennas, using repeaters and/or multiple frequencies ormultiplexing schemes, and the like. In some embodiments, the paymentzone 106 may be manually defined, such as by a user of the merchantsystem 108 that may input geographic coordinates into the computingdevice 102 (e.g., defined by latitude and longitude), drawing ageographic representation on an electronic map as is known, or othersuitable representations for the payment zone 106. Passing into adefined payment zone might be self-reported by detecting a broadcast orpoint-to-point transmission, or use of the geolocation detectingmechanism, of a user's mobile device, for example, as explained below.In other embodiments, the payment zone 106 may be generated via one ormore suitable methods, such as those described in: U.S. patentapplication Ser. No. 13/969,839, entitled “Method and System forGeolocation Mapping of Indoor Locations Using Payment Data,” by JustinX. Howe, filed Aug. 19, 2013; U.S. patent application Ser. No.14/040,328, entitled “Generating Geofences,” by Shuvo Cahtterjee et al.,filed Sep. 27, 2013; and U.S. patent application Ser. No. 13/826,671,entitled “Geolocation Check-In System,” by Scott Lee Harkey et al.,filed Mar. 14, 2013, each of which are herein incorporated by referencein their entirety.

Upon entry into the payment zone 106, the merchant system 108 may detectthe mobile computing device 102. Methods for detecting a geographiclocation or entry into a defined geographic area of a computing devicewill be apparent to persons having skill in the relevant art. Forinstance, the mobile computing device 102 may report its geographiclocation to the merchant system 108 using a suitable method, such as viaa local area network or a cellular communication network, directly orvia one or more intermediate entities and/or systems, such as a mobilenetwork operator, and the merchant system 108 may identify when themobile computing device's geographic location is within the payment zone106. In another example, the merchant system 108 may monitor for anyelectronic device inside the payment zone 106, such as via the use of awireless area network, radio frequency network, Bluetooth, etc. and maydetect the mobile computing device 102 when it appears to the merchantsystem 108.

Once the merchant system 108 has detected the entry of the mobilecomputing device 102 into the payment zone 106, the merchant system 108may electronically transmit a data signal to the mobile computing device102 that is superimposed or otherwise encoded with payment terms. Thedata signal may be transmitted using any suitable communication network,such as via the same communication network used to detect the mobilecomputing device 102 inside the payment zone 106. The payment terms mayinclude a payment rate, terms and conditions for entry and/or maintainedaccess to the payment zone 106, license agreements, liability waivers,etc. The mobile computing device 102 may parse the payment terms fromthe data signal and may display them to the consumer 104 using asuitable display device. The consumer 104 may then indicate acceptanceof the payment terms using a suitable input device of the mobilecomputing device 102. The mobile computing device 102 may electronicallytransmit a data signal back to the merchant system 108 that issuperimposed or otherwise encoded with the indicated acceptance.

In instances where the consumer 104 may decline acceptance of thepayment terms, the merchant system 108 may electronically transmit adata signal back to the mobile computing device 102 that is superimposedor otherwise encoded with a notification that the consumer 104 is toexit the payment zone 106. In some instances, the merchant system 108may also electronically transmit a notification to one or moreadditional computing devices, such as those associated with employees orother personnel of the corresponding merchant. For example, securitypersonnel may be notified of the consumer's declining of the paymentterms to ensure that the consumer 104 exits the payment zone 106. Insome cases, the mobile computing device 102 may be instructed, such asvia an internal application program or via a signal received from themerchant system 108, to play an audible alarm or other visual orauditory indicator if the consumer 104 does not exit the payment zone106 after a predetermined period of time.

Upon entry of the mobile computing device 102 into the payment zone 106or receipt of the payment terms, the mobile computing device 102 mayregister an entry timestamp associated with the payment zone 106. Insome instances, the merchant system 108 may also register an entrytimestamp for the mobile computing device 102 and the payment zone 106upon receipt of the indicated acceptance of the payment terms.

Once the mobile computing device 102 exits the payment zone 106, themobile computing device 102 may register an exit timestamp associatedwith the payment zone 106. In some cases, the merchant system 108 mayelectronically transmit a data signal to the mobile computing device 102when the merchant system 108 detects that the mobile computing device102 has exited the payment zone 106. Exiting of the payment zone 106 maybe detected using the same methods used to detect entry into the paymentzone 106, such as by identification of the device's geographic locationas compared to the payment zone's geofenced, lack of detection of themobile computing device 102 by a communication network associated withthe payment zone 106, etc. In such cases, the mobile computing device102 may register the exit timestamp upon receipt of the data signal. Insome embodiments, the merchant system 108 may also register an exittimestamp for the mobile computing device 102 and the payment zone 106upon detecting that the mobile computing device 102 has exited.

Once the mobile computing device 102 has registered the exit timestamp,the mobile computing device 102 may calculate a transaction amount forpayment based on the length of time inside the payment zone 106. Themobile computing device 102 may calculate the length of time based onthe entry and exit timestamps, and may then calculate the transactionamount based on the length of time and payment rate. As discussed above,the payment rate may be included in the payment terms, or, in someinstances, may be stored locally in the mobile computing device 102,such as in memory associated with an application program, such as anapplication program associated with the merchant system 108 or paymentzone 106, such as an application program configured to report geographiclocations to the merchant system 108 for detection of entry and exitinto payment zones 106.

The mobile computing device 102 may then electronically transmit a datasignal to the merchant system 108 that is superimposed or otherwiseencoded with the transaction amount and the payment details storedtherein that are associated with the transaction account associated withthe consumer 104 and used to fund the corresponding payment transaction.In instances where the mobile computing device 102 may include more thanone set of payment details (e.g., corresponding to multiple transactionaccounts), the consumer 104 may first indicate which transaction accountto use to fund the payment transaction. In some such instances, theconsumer 104 may indicate the transaction account during the acceptanceof the payment terms.

The merchant system 108 may receive the data signal from the mobilecomputing device 102 and parse the transaction amount and paymentdetails therefrom. The merchant system 108 may then initiate a paymenttransaction for the payment of the transaction amount to the merchantfrom the transaction account corresponding to the payment details. Insome instances, the merchant system 108 may first verify the transactionamount, such as by performing its own calculation of the transactionamount based on its registered entry and exit timestamps. In suchinstances, if a discrepancy is detected by the merchant system 108, suchas if the calculated transaction amount is a predetermined range oramount different from that provided by the mobile computing device 102,the merchant system 108 may request a second calculation from the mobilecomputing device 102 or may request approval of the transaction amountcalculated by the merchant system 108 from the consumer 104 via themobile computing device 102.

Initiation of the payment transaction by the merchant system 108 mayinclude the electronic transmission of the transaction amount, paymentdetails, and any other transaction data to an acquirer system 112associated with an acquiring financial institution associated with themerchant. The acquiring financial institution may be a financialinstitution, such as an acquiring bank, or other entity that issues atransaction account to the merchant suitable for use in the receipt offunds in payment transactions. In some instances, the merchant system108 may directly transmit the transaction amount, payment details, andother transaction data, collectively referred to herein as “transactiondata,” to the acquirer system 112 using a suitable communicationnetwork, or may transmit the transaction data to the acquirer system 112via one or more intermediate entities, such as a gateway processor.

The acquirer system 112 may receive the transaction data and maygenerate a transaction message for the payment transaction. Transactionmessages may be specially formatted data messages that are formattedpursuant to one or more standards governing the exchange of financialtransaction messages, such as the International Organization ofStandardization's ISO 8583 standard. A transaction message may include amessage type indicator indicative of a type of the related paymenttransaction, such as an authorization request or an authorizationresponse. A transaction message may also include a plurality of dataelements, where each data element is configured to store data as setforth in the associated standard(s), which may include the transactiondetails and payment details. In some instances, a transaction messagemay also include one or more bitmaps, which may be configured toindicate the data elements included in the transaction message and thedata stored therein.

The acquirer system 112 may generate a transaction message for thepayment transaction that includes a message type indicator indicative ofan authorization request that includes one or more data elementsconfigured to store the payment details, a data element configured tostore the transaction amount, and one or more additional data elementsconfigured to store the additional transaction data. The additionaltransaction data may include, for example, a transaction time,transaction date, geographic location, point of sale data, consumerdata, merchant data, offer data, reward data, loyalty data, issuer data,acquirer data, etc. In some embodiments, the merchant system 108 maygenerate the transaction message for the payment transaction, which maybe transmitted to the acquirer system 112 thereby.

The acquirer system 112 may submit the transaction message to a paymentnetwork 114 for processing. The transaction message may beelectronically transmitted to the payment network 114 via payment railsassociated therewith. The payment network 114 may then process thepayment transaction using traditional methods and systems, such as byseeking authorization approval by the issuer system 110. Once thepayment transaction is processed, the payment network 114 may return atransaction message including a message type indicator indicative of anauthorization response to the acquirer system 112 using the paymentrails. The authorization response may include a data element configuredto store a response code that indicates if the transaction is approvedor denied (e.g., by the issuer system 110). Additional detail regardingthe processing of payment transactions and exchange of transactionmessages is provided below with respect to the process 600 illustratedin FIG. 6.

The acquirer system 112 may receive the authorization response and mayreturn the authorization response or data included therein to themerchant system 108 using a suitable communication method and network.The merchant system 108 may then finalize the transaction accordingly,such as by furnishing a receipt to the consumer 104 or mobile computingdevice 102 if the transaction was approved, or seeking another paymentmethod if the transaction was declined.

In some instances, the consumer 104 may enter multiple payment zones 106with the mobile computing device 102, such as payment zones 106 thatshare a border or entering a second payment zone 106 within a firstpayment zone 106. In some such instances, the mobile computing device102 may initiate the payment transaction with the merchant system 108upon exiting each respective payment zone 106. In other such instances,the mobile computing device 102 may register multiple entry and exittimestamps and may initiate a single payment transaction for all paymentzones 106, or a single payment transaction for each payment zone 106entered, based on the respective entry and exit timestamps. In somecases, a single payment rate may be used for each payment zone 106, oreach payment zone 106 may have a separate payment rate associatedtherewith. The merchant system 108 may provide payment terms to themobile computing device 102 for each payment zone 106 upon firstdetection, or may transmit payment terms for each payment zone 106 uponentry to that respective payment zone 106. In latter instances, theconsumer 104 may be required to indicate acceptance of the payment termsfor each payment zone 106 entered.

In some embodiments, payment terms may include a limit on the amount oftime in which the consumer 104 may remain in the associated payment zone106. In such an instance, the mobile computing device 102 may beconfigured to visually or aurally inform the consumer 104 prior toexpiration and/or when the amount of time expires. For example, thepayment terms may indicate that the consumer 104 can be within ageofenced payment zone 106 for four hours. In such an example, themobile computing device 102 may display a reminder to the consumer 104at 60, 30, and 15 minutes remaining, and may display a reminder andaudibly emit an alarm or notification when 5 minutes are remaining, sothat the consumer 104 can exit the payment zone 106.

In some embodiments, indication of acceptance of payment terms by theconsumer 104 may also include the payment details for the transactionaccount used in the subsequent payment transaction. In such embodiments,the merchant system 108 may initiate the payment transaction upon entryof the mobile computing device 102 into the payment zone 106. Thetransaction amount used in such an instance may be a nominal amount ormay be an amount based on an approximate amount of time that the mobilecomputing device 102 may remain in the payment zone 106, such as basedon consumer averages, a prediction provided by the consumer 104, etc. Insuch cases, the merchant system 108 may later provide an update to thetransaction amount once the mobile computing device 102 has exited thepayment zone 106 and calculated the transaction amount, which may beused in the clearing of the payment transaction. In such cases, thepayment transaction may be processed and cleared using a traditionalmethod for payment transactions where transaction amounts may bemodified, such as due to gratuity.

Methods and systems discussed herein may enable a merchant to charge aconsumer for an amount of time in which the consumer accesses ageofenced payment zone 106. By using mobile computing devices 102, sucha system may be implemented using existing computing systems andinfrastructure of the merchant systems 108. In addition, the use ofmobile computing devices 102 for each consumer 104 may enable themerchant system 108 to accommodate a significant number (e.g.,thousands) of consumers entering and exiting the payment zone 106 at anygiven time. As such, the systems discussed herein provide atechnological solution that can enable a merchant system 108 to initiatetime- and location-based transactions for consumer access to one or morepayment zones more efficiently and effectively.

Mobile Computing Device

FIG. 2 illustrates an embodiment of the mobile computing device 102 ofthe system 100. It will be apparent to persons having skill in therelevant art that the embodiment of the mobile computing device 102illustrated in FIG. 2 is provided as illustration only and may not beexhaustive to all possible configurations of the mobile computing device102 suitable for performing the functions as discussed herein. Forexample, the computer system 700 illustrated in FIG. 7 and discussed inmore detail below may be a suitable configuration of the mobilecomputing device 102.

The mobile computing device 102 may include a receiving device 202. Thereceiving device 202 may be configured to receive data over one or morenetworks via one or more network protocols. In some embodiments, thereceiving device 202 may be configured to receive data over the paymentrails, such as using specially configured infrastructure associated withpayment networks 114 for the transmission of transaction messages thatinclude sensitive financial data and information. In some instances, thereceiving device 202 may also be configured to receive data from issuersystems 110, merchant systems 108, payment networks 114, and otherentities via alternative networks, such as the Internet. In someembodiments, the receiving device 202 may be comprised of multipledevices, such as different receiving devices for receiving data overdifferent networks, such as a first receiving device for receiving dataover payment rails and a second receiving device for receiving data overthe Internet. The receiving device 202 may receive data signals that areelectronically transmitted, where data may be superimposed on the datasignal and decoded, parsed, read, or otherwise obtained via receipt ofthe data signal by the receiving device 202. In some instances, thereceiving device 202 may include a parsing module for parsing thereceived data signal to obtain the data superimposed thereon. Forexample, the receiving device 202 may include a parser programconfigured to receive and transform the received data signal into usableinput for the functions performed by the processing device to carry outthe methods and systems described herein.

The receiving device 202 may be configured to receive data signalselectronically transmitted by issuer systems 110 that may besuperimposed or otherwise encoded with payment details associated with atransaction account. The receiving device 202 may also be configured toreceive data signals electronically transmitted by merchant systems 108that are superimposed or otherwise encoded with entry and exitnotifications, which may include payment terms. The receiving device 202may also receive additional data signals electronically transmitted bymerchant systems 108, such as may be superimposed or otherwise encodedwith alternative or updated transaction amounts for paymenttransactions, receipts for payment transactions, etc. In some instances,the receiving device 202 may receive data signals electronicallytransmitted by the payment network 114 or issuer system 110 that aresuperimposed or otherwise encoded with receipts for payment transactionsinitiated with the merchant system 108.

The mobile computing device 102 may also include a communication module204. The communication module 204 may be configured to transmit databetween modules, engines, databases, memories, and other components ofthe mobile computing device 102 for use in performing the functionsdiscussed herein. The communication module 204 may be comprised of oneor more communication types and utilize various communication methodsfor communications within a computing device. For example, thecommunication module 204 may be comprised of a bus, contact pinconnectors, wires, etc. In some embodiments, the communication module204 may also be configured to communicate between internal components ofthe mobile computing device 102 and external components of the mobilecomputing device 102, such as externally connected databases, displaydevices, input devices, etc. The mobile computing device 102 may alsoinclude a processing device. The processing device may be configured toperform the functions of the mobile computing device 102 discussedherein as will be apparent to persons having skill in the relevant art.In some embodiments, the processing device may include and/or becomprised of a plurality of engines and/or modules specially configuredto perform one or more functions of the processing device, such as aquerying module 208, timing module 210, calculation module 218, etc. Asused herein, the term “module” may be software or hardware particularlyprogrammed to receive an input, perform one or more processes using theinput, and provide an output. The input, output, and processes performedby various modules will be apparent to one skilled in the art based uponthe present disclosure.

The mobile computing device 102 may also include a memory 206. Thememory 206 may be configured to store data for use by the mobilecomputing device 102 in performing the functions discussed herein. Thememory 206 may be configured to store data using suitable dataformatting methods and schema and may be any suitable type of memory,such as read-only memory, random access memory, etc. The memory 206 mayinclude, for example, encryption keys and algorithms, communicationprotocols and standards, data formatting standards and protocols,program code for modules and application programs of the processingdevice, and other data that may be suitable for use by the mobilecomputing device 102 in the performance of the functions disclosedherein as will be apparent to persons having skill in the relevant art.In some embodiments, the memory 206 may be comprised of or may otherwiseinclude a relational database that utilizes structured query languagefor the storage, identification, modifying, updating, accessing, etc. ofstructured data sets stored therein.

The memory 206 may be configured to store payment details provisioned tothe mobile computing device 102 by one or more issuer systems 110. Thememory 206 may also be configured to store payment rates and other dataincluded in payment terms received from merchant systems 108 via thereceiving device 202. The memory 206 may also be configured to storetimestamps associated with payment zones 106. In some embodiments, thememory 206 may also be configured to store program code for anapplication program configured to perform functions associated with themobile computing device 102 discussed herein, such as for the reportingof geographic locations to merchant systems 108, detection of paymentzones 106, display or aural emission of time-related notifications, etc.

The mobile computing device 102 may include a querying module 208. Thequerying module 208 may be configured to execute queries on databases toidentify information. The querying module 208 may receive one or moredata values or query strings, and may execute a query string basedthereon on an indicated database, such as the memory 206, to identifyinformation stored therein. The querying module 208 may then output theidentified information to an appropriate engine or module of the mobilecomputing device 102 as necessary. The querying module 208 may, forexample, execute a query on the memory 206 to identify payment detailsstored therein for use in a payment transaction. The querying module 208may also execute a query on the memory 206 to identify registeredtimestamps and a payment rate for use in calculation of a transactionamount.

The mobile computing device 102 may also include a timing module 210.The timing module 210 may be configured to register timestamps. Thetiming module 210 may receive an instruction to register a timestamp asinput, which may be accompanied by data for association with thetimestamp, may register the timestamp, and may output the registeredtimestamp to another module or engine of the mobile computing device102. For example, the timing module 210 may be configured to register atimestamp associated with entry or exit into a payment zone 106, whichmay be provided to the querying module 208 for storage into the memory206.

The mobile computing device 102 may also include a display device 212.The display device 212 may be configured to display data to the consumer104 using any suitable method of display. The display device 212 may be,for example, a liquid crystal display, light emitting diode display,thin film transistor display, capacitive touch display, etc. In someinstances, the mobile computing device 102 may include more than onedisplay device 212, where each display device 212 may be the same or oneof a plurality of different types. The display device 212 may beconfigured to display payment terms received from the merchant system108 (e.g., via the receiving device 202) to the consumer 104.

The mobile computing device 102 may also include an input device 214.The input device 214 may be configured to receive input from theconsumer 104 for use in conjunction with the functions of the mobilecomputing device 102 as discussed herein. The input device 214 may be,for example, a keyboard, click wheel, scroll wheel, track pad,microphone, camera, capacitive touch display, stylus, etc. In someinstances, the mobile computing device 102 may include more than oneinput device 214, where each input device 214 may be the same or one ofa plurality of different types. The input device 214 may be configuredto receive input from the consumer 104 indicating acceptance or denialof payment terms for access to one or more payment zones 106.

The mobile computing device 102 may also include a calculation module218. The calculation module 218 may be configured to performcalculations for use by the mobile computing device 102 in performingthe functions discussed herein. The calculation module 218 may receivedata and instructions related thereto as input, may perform one or morecalculations as instructed, and may output the result of the calculationto another module or engine of the mobile computing device 102. Forexample, the calculation module 218 may be configured to calculate alength of time in a payment zone 106 based on one or more sets oftimestamps (e.g., as registered by the timing module 210 and read fromthe memory 206 by the querying module 208), where each set of timestampsmay include both an entry and exit timestamp for the payment zone 106.The calculation module 218 may also be configured to calculate atransaction amount for each payment zone 106 based on the associatedlength of time and a corresponding payment rate (e.g., read from thememory 206 via the querying module 208). In some instances, thecalculation module 218 may also be configured to sum transactionamounts, such as in instances where multiple payment zones 106 wereaccessed and will be paid for in a single payment transaction.

The mobile computing device 102 may also include a transmitting device216. The transmitting device 216 may be configured to transmit data overone or more networks via one or more network protocols. In someembodiments, the transmitting device 216 may be configured to transmitdata over the payment rails, such as using specially configuredinfrastructure associated with payment networks 114 for the transmissionof transaction messages that include sensitive financial data andinformation, such as identified payment credentials. In some instances,the transmitting device 216 may be configured to transmit data to issuersystems 110, merchant systems 108, payment networks 114, and otherentities via alternative networks, such as the Internet. In someembodiments, the transmitting device 216 may be comprised of multipledevices, such as different transmitting devices for transmitting dataover different networks, such as a first transmitting device fortransmitting data over the payment rails and a second transmittingdevice for transmitting data over the Internet. The transmitting device216 may electronically transmit data signals that have data superimposedthat may be parsed by a receiving computing device. In some instances,the transmitting device 216 may include one or more modules forsuperimposing, encoding, or otherwise formatting data into data signalssuitable for transmission.

The transmitting device 216 may be configured to electronically transmitdata signals to issuer systems 110 that are superimposed or otherwiseencoded with data requests requesting payment details for a transactionaccount for use in initiating payment transactions via the mobilecomputing device 102. The transmitting device 216 may also be configuredto electronically transmit data signals to merchant systems 108 that aresuperimposed or otherwise encoded with indications of acceptance ordenial of payment terms, and payment details and transaction amounts forpayment transactions related to access to payment zones 106.

Initiation of a Time- and Location-Based Geographic Transaction

FIGS. 3A and 3B illustrate a process for the initiation of a time- andlocation-based geographic transaction associated with access to ageofenced payment zone 106 by a consumer 104 measured via a mobilecomputing device 102.

In step 302, the mobile computing device 102 may enter a payment zone106. In step 304, the timing module 210 of the mobile computing device102 may register an entry timestamp for entry into the payment zone 106.The entry timestamp may be stored in the memory 206 via execution of aquery thereon by the querying module 208 of the mobile computing device102. In the example illustrated in FIGS. 3A and 3B, the entry into thepayment zone 106 may be detected by the mobile computing device 102. Forexample, the mobile computing device 102 may store (e.g., in the memory206) geofencing data associated with the payment zone 106 and may detectthe geographic location of the mobile computing device 102 and identifyentry into the payment zone 106. In alternative embodiments, themerchant system 108 may detect entry into the payment zone 106 by themobile computing device 102 and may electronically transmit a datasignal to the mobile computing device 102 for notification thereof.

In step 306, the merchant system 108 may receive a data signalelectronically transmitted to the merchant system 108 by thetransmitting device 216 of the mobile computing device 102 that issuperimposed or otherwise encoded with a payment zone entry detectionnotification. The notification may include data identifying the mobilecomputing device 102 and the payment zone 106. In some instances, thenotification may also include the entry timestamp registered by themobile computing device 102, payment details, or other data. Dataidentifying the mobile computing device 102 may include anyidentification value associated with the mobile computing device 102,such as a media access control address, internet protocol address,username, e-mail address, telephone number, identification number,application number, registration number, serial number, etc.

In step 308, the merchant system 108 may electronically transmit a datasignal back to the mobile computing device 102 that is superimposed orotherwise encoded with payment terms associated with the payment zone106. In step 310, the receiving device 202 of the mobile computingdevice 102 may receive and parse the data signal. The payment termsparsed therefrom may include a payment rate, liability terms, aliability waiver, time restrictions, entry requirements, etc. In step312, the display device 212 of the mobile computing device 102 maydisplay the payment terms to the consumer 104 along with a prompt forthe consumer 104 to provide acceptance or denial of the payment terms.In step 314, the input device 214 of the mobile computing device 102 mayreceive the consumer's input indicating acceptance, or denial, ifapplicable, to the payment terms.

In step 316, the mobile computing device 102 may exit the payment zone106. In some embodiments, the transmitting device 216 of the mobilecomputing device 102 may electronically transmit a data signal to themerchant system 108 that is superimposed or otherwise encoded with anotification that the mobile computing device 102 has exited the paymentzone. In such an embodiment, the process may also include step 318 wherethe merchant system 108 may receive the notification, which may includethe information identifying the mobile computing device 102, the paymentzone 106, an exit timestamp, and any other suitable data. In step 320,the timing module 210 of the mobile computing device 102 may register anexit timestamp for the exit of the payment zone 106, which may be storedin the memory 206 by the querying module 208.

In step 322, the calculation module 218 of the mobile computing device102 may calculate a length of time that the mobile computing device 102remained in the payment zone 106 based on the entry and exit timestamps,and may then calculate a payment amount for the access to the paymentzone 106 based on the associated payment rate and the calculated lengthof time. In step 324, the transmitting device 216 of the mobilecomputing device 102 may electronically transmit a data signalsuperimposed or otherwise encoded with the calculated payment amount andthe payment details (e.g., read from the memory 206 via the queryingmodule 208) for the transaction account to be used to fund the paymenttransaction to the merchant system 108. In step 326, the merchant system108 may receive the transaction amount and payment details and, in step328, may initiate an electronic payment transaction for payment of thetransaction amount from the transaction account to a transaction accountassociated with the merchant.

Payment Zones

FIG. 4 illustrates an example of movement of the mobile computing device102 through a plurality of different payment zones 106 and thecalculation of transaction amounts associated therewith for payment in apayment transaction.

In the example illustrated in FIG. 4, the mobile computing device 102may enter into three different payment zones 106, illustrated as paymentzones 106 a, 106 b, and 106 c. In the illustrated example, the mobilecomputing device 102 may enter payment zone 106 a and remain there for143 minutes (e.g., as calculated by the calculation module 218 via entryand exit timestamps registered by the timing module 210) before enteringinto payment zone 106 b. The mobile computing device 102 may remain inpayment zone 106 b for 29 minutes before entering payment zone 106 c.After being in payment zone 106 c for 42 minutes, the mobile computingdevice 102 may return to payment zone 106 b for 14 minutes and thenremain in payment zone 106 a for 71 minutes before exiting all of thepayment zones 106.

In one embodiment, the mobile computing device 102 may initiate a time-and location-based payment transaction for each period of time in apayment zone 106 separately. In such an embodiment, the mobile computingdevice 102 may initiate a first payment transaction for payment of atransaction amount based on the 143 minutes in payment zone 106 a, thena second payment transaction for a transaction amount based on the 29minutes in payment zone 106 b, a third transaction for the 42 minutes inpayment zone 106 c, a fourth transaction for the 14 minutes back inpayment zone 106 b, and a fifth transaction for the 71 minutes back inpayment zone 106 a.

In another embodiment, the mobile computing device 102 may initiate asingle time- and location-based payment transaction for each paymentzone 106 entered. In such an embodiment, the mobile computing device 102may initiate separate payment transactions once the mobile computingdevice 102 has left all payment zones 106, or may initiate a paymenttransaction for a payment zone 106 that has been left and will not bereentered, such as may be indicated by the consumer 104 via the inputdevice 214 of the mobile computing device. The mobile computing device102 may thus initiate a payment transaction for payment of a transactionamount based on the combined 214 minutes in payment zone 106 a, apayment transaction for payment based on the combined 43 minutes inpayment zone 106 b, and a payment transaction for the 42 minutes inpayment zone 106 c.

In another embodiment, the mobile computing device 102 may initiate asingle time- and location-based payment transaction for all paymentzones 106 entered by the mobile computing device 102. In such aninstance, once the mobile computing device 102 has exited all of thepayment zones (e.g., once the mobile computing device 102 leaves paymentzone 106 a and does not detect entry into any other payment zone 106)the calculation module 218 of the mobile computing device 102 maycalculate a single transaction amount based on the times and associatedpayment rates for each payment zone. The mobile computing device 102 maythen initiate a single payment transaction for the transaction amountthat covers the time in each of the payment zones 106 entered by themobile computing device 102.

In some embodiments, payment zones may be independent. For example,entry of the mobile computing device 102 into payment zone 106 b frompayment zone 106 a may stop incurring charges from payment zone 106 a.In other embodiments, a payment zone 106 may be a subset of anotherpayment zone 106. In an example, entry of the mobile computing device102 into the payment zone 106 b from payment zone 106 a may continue toincur charges for payment zone 106 a, in addition to incurring chargesfor time spent in the payment zone 106 b. For instance, payment zone 106b may be a premium, restricted access area of a venue where the attendeemay incur additional charges for being in the premium area in additionto charges incurred for attending the venue.

Exemplary Method for Initiating a Time- and Geographic-Based ElectronicTransaction

FIG. 5 illustrates a method 500 for the initiation of an electronicpayment transaction based on an amount of time in which a mobilecomputing device has access a geofenced payment zone.

In step 502, payment details may be stored in a memory (e.g., the memory206) of a mobile computing device (e.g., the mobile computing device102), wherein the payment details comprises a structured data setincluding data associated with a transaction account suitable for use infunding an electronic transaction. In step 504, a first data signalsuperimposed with a payment zone notification may be received by areceiving device (e.g., the receiving device 202) of the mobilecomputing device, wherein the first data signal is received upon entryof the mobile computing device into a predefined geographic area (e.g.,payment zone 106) and where the payment zone notification includes atleast payment terms. In step 506, a first timestamp may be registeredfor a timing module (e.g., the timing module 210) of the mobilecomputing device upon receipt of the first data signal.

In step 508, at least the payment terms included in the payment zonenotification may be displayed on a display device (e.g., the displaydevice 212) of the mobile computing device. In step 510, an indicationof approval of the payment terms may be received by an input device(e.g., the input device 214) of the mobile computing device. In step512, a second data signal superimposed with an exit notification may bereceived by the receiving device of the mobile computing device, whereinthe second data signal is received upon exit of the mobile computingdevice from the predefined geographic area.

In step 514, a second timestamp may be registered by the timing moduleof the mobile computing device upon receipt of the second data signal.In step 516, a transaction amount may be calculated by a calculationmodule (e.g., the calculation module 218) of the mobile computing devicebased on at least an elapsed amount of time between the first timestampand the second timestamp and a payment rate. In step 518, a third datasignal superimposed with at least the calculated transaction amount andpayment details may be electronically transmitted by a transmittingdevice (e.g., the transmitting device 216) of the mobile computingdevice.

In one embodiment, the payment terms may further include the paymentrate. In some embodiments, the first and second data signal may bereceived from an external computing device, and the third data signalmay be electronically transmitted to the external computing device. Inother embodiments, the first and second data signal may be received viainternal communication of the mobile computing device.

In one embodiment, the payment terms may further include communicationdata, and the third data signal may be electronically transmitted to anexternal computing device based on the communication data. In someembodiments, the method 500 may further include storing, in the memoryof the mobile computing device, the payment rate. In one embodiment, thethird data signal may be further superimposed with the first timestampand the second timestamp.

In some embodiments, the method 500 may also include: receiving, by thereceiving device of the mobile computing device, a fourth data signalsuperimposed with a second exit notification, wherein the fourth datasignal is received upon exit of the mobile computing device from asecond predefined geographic area; and registering, by the timing moduleof the mobile computing device, a third timestamp upon receipt of thefourth data signal, wherein the transaction amount is further based on asecond elapsed amount of time between the second timestamp and the thirdtimestamp and a second payment rate. In a further embodiment, the secondpayment rate may be equivalent to the payment rate. In another furtherembodiment, the exit notification superimposed on the second data signalmay include revised payment terms, the revised payment terms includingthe second payment rate. In an even further embodiment, the method 500may further include displaying, on the display device of the mobilecomputing device, at least the revised payment terms included in theexit notification; and receiving, by the input device of the mobilecomputing device, an indication of approval of the revised paymentterms.

Payment Transaction Processing System and Process

FIG. 6 illustrates a transaction processing system and a process 600 forthe processing of payment transactions in the system, which may includethe processing of thousands, millions, or even billions of transactionsduring a given period (e.g., hourly, daily, weekly, etc.). The process600 and steps included therein may be performed by one or morecomponents of the system 100 discussed above, such as the mobilecomputing device 102, consumer 104, merchant system 108, issuer system110, acquirer system 112, payment network 114, etc. The processing ofpayment transactions using the system and process 600 illustrated inFIG. 6 and discussed below may utilize the payment rails, which may becomprised of the computing devices and infrastructure utilized toperform the steps of the process 600 as specially configured andprogrammed by the entities discussed below, including the transactionprocessing server 612, which may be associated with one or more paymentnetworks configured to processing payment transactions. It will beapparent to persons having skill in the relevant art that the process600 may be incorporated into the processes illustrated in FIGS. 3A, 3B,and 5, discussed above, with respect to the step or steps involved inthe processing of a payment transaction. In addition, the entitiesdiscussed herein for performing the process 600 may include one or morecomputing devices or systems configured to perform the functionsdiscussed below. For instance, the merchant 606 may be comprised of oneor more point of sale devices, a local communication network, acomputing server, and other devices configured to perform the functionsdiscussed below.

In step 620, an issuing financial institution 602 may issue a paymentcard or other suitable payment instrument to a consumer 604. The issuingfinancial institution may be a financial institution, such as a bank, orother suitable type of entity that administers and manages paymentaccounts and/or payment instruments for use with payment accounts thatcan be used to fund payment transactions. The consumer 604 may have atransaction account with the issuing financial institution 602 for whichthe issued payment card is associated, such that, when used in a paymenttransaction, the payment transaction is funded by the associatedtransaction account. In some embodiments, the payment card may be issuedto the consumer 604 physically. In other embodiments, the payment cardmay be a virtual payment card or otherwise provisioned to the consumer604 in an electronic format.

In step 622, the consumer 604 may present the issued payment card to amerchant 606 for use in funding a payment transaction. The merchant 606may be a business, another consumer, or any entity that may engage in apayment transaction with the consumer 604. The payment card may bepresented by the consumer 604 via providing the physical card to themerchant 606, electronically transmitting (e.g., via near fieldcommunication, wireless transmission, or other suitable electronictransmission type and protocol) payment details for the payment card, orinitiating transmission of payment details to the merchant 606 via athird party. The merchant 606 may receive the payment details (e.g., viathe electronic transmission, via reading them from a physical paymentcard, etc.), which may include at least a transaction account numberassociated with the payment card and/or associated transaction account.In some instances, the payment details may include one or moreapplication cryptograms, which may be used in the processing of thepayment transaction.

In step 624, the merchant 606 may enter transaction details into a pointof sale computing system. The transaction details may include thepayment details provided by the consumer 604 associated with the paymentcard and additional details associated with the transaction, such as atransaction amount, time and/or date, product data, offer data, loyaltydata, reward data, merchant data, consumer data, point of sale data,etc. Transaction details may be entered into the point of sale system ofthe merchant 606 via one or more input devices, such as an optical barcode scanner configured to scan product bar codes, a keyboard configuredto receive product codes input by a user, etc. The merchant point ofsale system may be a specifically configured computing device and/orspecial purpose computing device intended for the purpose of processingelectronic financial transactions and communicating with a paymentnetwork (e.g., via the payment rails). The merchant point of sale systemmay be an electronic device upon which a point of sale systemapplication is run, wherein the application causes the electronic deviceto receive and communicated electronic financial transaction informationto a payment network. In some embodiments, the merchant 606 may be anonline retailer in an e-commerce transaction. In such embodiments, thetransaction details may be entered in a shopping cart or otherrepository for storing transaction data in an electronic transaction aswill be apparent to persons having skill in the relevant art.

In step 626, the merchant 606 may electronically transmit a data signalsuperimposed with transaction data to a gateway processor 608. Thegateway processor 608 may be an entity configured to receive transactiondetails from a merchant 606 for formatting and transmission to anacquiring financial institution 610. In some instances, a gatewayprocessor 608 may be associated with a plurality of merchants 606 and aplurality of acquiring financial institutions 610. In such instances,the gateway processor 608 may receive transaction details for aplurality of different transactions involving various merchants, whichmay be forwarded on to appropriate acquiring financial institutions 610.By having relationships with multiple acquiring financial institutions610 and having the requisite infrastructure to communicate withfinancial institutions using the payment rails, such as usingapplication programming interfaces associated with the gateway processor608 or financial institutions used for the submission, receipt, andretrieval of data, a gateway processor 608 may act as an intermediaryfor a merchant 606 to be able to conduct payment transactions via asingle communication channel and format with the gateway processor 608,without having to maintain relationships with multiple acquiringfinancial institutions 610 and payment processors and the hardwareassociated thereto. Acquiring financial institutions 610 may befinancial institutions, such as banks, or other entities thatadministers and manages payment accounts and/or payment instruments foruse with payment accounts. In some instances, acquiring financialinstitutions 610 may manage transaction accounts for merchants 606. Insome cases, a single financial institution may operate as both anissuing financial institution 602 and an acquiring financial institution610.

The data signal transmitted from the merchant 606 to the gatewayprocessor 608 may be superimposed with the transaction details for thepayment transaction, which may be formatted based on one or morestandards. In some embodiments, the standards may be set forth by thegateway processor 608, which may use a unique, proprietary format forthe transmission of transaction data to/from the gateway processor 608.In other embodiments, a public standard may be used, such as theInternational Organization for Standardization's ISO 8683 standard. Thestandard may indicate the types of data that may be included, theformatting of the data, how the data is to be stored and transmitted,and other criteria for the transmission of the transaction data to thegateway processor 608.

In step 628, the gateway processor 608 may parse the transaction datasignal to obtain the transaction data superimposed thereon and mayformat the transaction data as necessary. The formatting of thetransaction data may be performed by the gateway processor 608 based onthe proprietary standards of the gateway processor 608 or an acquiringfinancial institution 610 associated with the payment transaction. Theproprietary standards may specify the type of data included in thetransaction data and the format for storage and transmission of thedata. The acquiring financial institution 610 may be identified by thegateway processor 608 using the transaction data, such as by parsing thetransaction data (e.g., deconstructing into data elements) to obtain anaccount identifier included therein associated with the acquiringfinancial institution 610. In some instances, the gateway processor 608may then format the transaction data based on the identified acquiringfinancial institution 610, such as to comply with standards offormatting specified by the acquiring financial institution 610. In someembodiments, the identified acquiring financial institution 610 may beassociated with the merchant 606 involved in the payment transaction,and, in some cases, may manage a transaction account associated with themerchant 606.

In step 630, the gateway processor 608 may electronically transmit adata signal superimposed with the formatted transaction data to theidentified acquiring financial institution 610. The acquiring financialinstitution 610 may receive the data signal and parse the signal toobtain the formatted transaction data superimposed thereon. In step 632,the acquiring financial institution may generate an authorizationrequest for the payment transaction based on the formatted transactiondata. The authorization request may be a specially formatted transactionmessage that is formatted pursuant to one or more standards, such as theISO 8683 standard and standards set forth by a payment processor used toprocess the payment transaction, such as a payment network. Theauthorization request may be a transaction message that includes amessage type indicator indicative of an authorization request, which mayindicate that the merchant 606 involved in the payment transaction isrequesting payment or a promise of payment from the issuing financialinstitution 602 for the transaction. The authorization request mayinclude a plurality of data elements, each data element being configuredto store data as set forth in the associated standards, such as forstoring an account number, application cryptogram, transaction amount,issuing financial institution 602 information, etc.

In step 634, the acquiring financial institution 610 may electronicallytransmit the authorization request to a transaction processing server612 for processing. The transaction processing server 612 may becomprised of one or more computing devices as part of a payment networkconfigured to process payment transactions. In some embodiments, theauthorization request may be transmitted by a transaction processor atthe acquiring financial institution 610 or other entity associated withthe acquiring financial institution. The transaction processor may beone or more computing devices that include a plurality of communicationchannels for communication with the transaction processing server 612for the transmission of transaction messages and other data to and fromthe transaction processing server 612. In some embodiments, the paymentnetwork associated with the transaction processing server 612 may own oroperate each transaction processor such that the payment network maymaintain control over the communication of transaction messages to andfrom the transaction processing server 612 for network and informationalsecurity.

In step 636, the transaction processing server 612 may performvalue-added services for the payment transaction. Value-added servicesmay be services specified by the issuing financial institution 602 thatmay provide additional value to the issuing financial institution 602 orthe consumer 604 in the processing of payment transactions. Value-addedservices may include, for example, fraud scoring, transaction or accountcontrols, account number mapping, offer redemption, loyalty processing,etc. For instance, when the transaction processing server 612 receivesthe transaction, a fraud score for the transaction may be calculatedbased on the data included therein and one or more fraud scoringalgorithms and/or engines. In some instances, the transaction processingserver 612 may first identify the issuing financial institution 602associated with the transaction, and then identify any servicesindicated by the issuing financial institution 602 to be performed. Theissuing financial institution 602 may be identified, for example, bydata included in a specific data element included in the authorizationrequest, such as an issuer identification number. In another example,the issuing financial institution 602 may be identified by the primaryaccount number stored in the authorization request, such as by using aportion of the primary account number (e.g., a bank identificationnumber) for identification.

In step 638, the transaction processing server 612 may electronicallytransmit the authorization request to the issuing financial institution602. In some instances, the authorization request may be modified, oradditional data included in or transmitted accompanying theauthorization request as a result of the performance of value-addedservices by the transaction processing server 612. In some embodiments,the authorization request may be transmitted to a transaction processor(e.g., owned or operated by the transaction processing server 612)situated at the issuing financial institution 602 or an entityassociated thereof, which may forward the authorization request to theissuing financial institution 602.

In step 640, the issuing financial institution 602 may authorize thetransaction account for payment of the payment transaction. Theauthorization may be based on an available credit amount for thetransaction account and the transaction amount for the paymenttransaction, fraud scores provided by the transaction processing server612, and other considerations that will be apparent to persons havingskill in the relevant art. The issuing financial institution 602 maymodify the authorization request to include a response code indicatingapproval (e.g., or denial if the transaction is to be denied) of thepayment transaction. The issuing financial institution 602 may alsomodify a message type indicator for the transaction message to indicatethat the transaction message is changed to be an authorization response.In step 642, the issuing financial institution 602 may transmit (e.g.,via a transaction processor) the authorization response to thetransaction processing server 612.

In step 644, the transaction processing server 612 may forward theauthorization response to the acquiring financial institution 610 (e.g.,via a transaction processor). In step 646, the acquiring financialinstitution may generate a response message indicating approval ordenial of the payment transaction as indicated in the response code ofthe authorization response, and may transmit the response message to thegateway processor 608 using the standards and protocols set forth by thegateway processor 608. In step 648, the gateway processor 608 mayforward the response message to the merchant 606 using the appropriatestandards and protocols. In step 650, assuming the transaction wasapproved, the merchant 606 may then provide the products purchased bythe consumer 604 as part of the payment transaction to the consumer 604.

In some embodiments, once the process 600 has completed, payment fromthe issuing financial institution 602 to the acquiring financialinstitution 610 may be performed. In some instances, the payment may bemade immediately or within one business day. In other instances, thepayment may be made after a period of time, and in response to thesubmission of a clearing request from the acquiring financialinstitution 610 to the issuing financial institution 602 via thetransaction processing server 612. In such instances, clearing requestsfor multiple payment transactions may be aggregated into a singleclearing request, which may be used by the transaction processing server612 to identify overall payments to be made by whom and to whom forsettlement of payment transactions.

In some instances, the system may also be configured to perform theprocessing of payment transactions in instances where communicationpaths may be unavailable. For example, if the issuing financialinstitution is unavailable to perform authorization of the transactionaccount (e.g., in step 640), the transaction processing server 612 maybe configured to perform authorization of transactions on behalf of theissuing financial institution 602. Such actions may be referred to as“stand-in processing,” where the transaction processing server “standsin” as the issuing financial institution 602. In such instances, thetransaction processing server 612 may utilize rules set forth by theissuing financial institution 602 to determine approval or denial of thepayment transaction, and may modify the transaction message accordinglyprior to forwarding to the acquiring financial institution 610 in step644. The transaction processing server 612 may retain data associatedwith transactions for which the transaction processing server 612 standsin, and may transmit the retained data to the issuing financialinstitution 602 once communication is reestablished. The issuingfinancial institution 602 may then process transaction accountsaccordingly to accommodate for the time of lost communication.

In another example, if the transaction processing server 612 isunavailable for submission of the authorization request by the acquiringfinancial institution 610, then the transaction processor at theacquiring financial institution 610 may be configured to perform theprocessing of the transaction processing server 612 and the issuingfinancial institution 602. The transaction processor may include rulesand data suitable for use in making a determination of approval ordenial of the payment transaction based on the data included therein.For instance, the issuing financial institution 602 and/or transactionprocessing server 612 may set limits on transaction type, transactionamount, etc. that may be stored in the transaction processor and used todetermine approval or denial of a payment transaction based thereon. Insuch instances, the acquiring financial institution 610 may receive anauthorization response for the payment transaction even if thetransaction processing server 612 is unavailable, ensuring thattransactions are processed and no downtime is experienced even ininstances where communication is unavailable. In such cases, thetransaction processor may store transaction details for the paymenttransactions, which may be transmitted to the transaction processingserver 612 (e.g., and from there to the associated issuing financialinstitutions 602) once communication is reestablished.

In some embodiments, transaction processors may be configured to includea plurality of different communication channels, which may utilizemultiple communication cards and/or devices, to communicate with thetransaction processing server 612 for the sending and receiving oftransaction messages. For example, a transaction processor may becomprised of multiple computing devices, each having multiplecommunication ports that are connected to the transaction processingserver 612. In such embodiments, the transaction processor may cyclethrough the communication channels when transmitting transactionmessages to the transaction processing server 612, to alleviate networkcongestion and ensure faster, smoother communications. Furthermore, ininstances where a communication channel may be interrupted or otherwiseunavailable, alternative communication channels may thereby beavailable, to further increase the uptime of the network.

In some embodiments, transaction processors may be configured tocommunicate directly with other transaction processors. For example, atransaction processor at an acquiring financial institution 610 mayidentify that an authorization request involves an issuing financialinstitution 602 (e.g., via the bank identification number included inthe transaction message) for which no value-added services are required.The transaction processor at the acquiring financial institution 610 maythen transmit the authorization request directly to the transactionprocessor at the issuing financial institution 602 (e.g., without theauthorization request passing through the transaction processing server612), where the issuing financial institution 602 may process thetransaction accordingly.

The methods discussed above for the processing of payment transactionsthat utilize multiple methods of communication using multiplecommunication channels, and includes fail safes to provide for theprocessing of payment transactions at multiple points in the process andat multiple locations in the system, as well as redundancies to ensurethat communications arrive at their destination successfully even ininstances of interruptions, may provide for a robust system that ensuresthat payment transactions are always processed successfully with minimalerror and interruption. This advanced network and its infrastructure andtopology may be commonly referred to as “payment rails,” wheretransaction data may be submitted to the payment rails from merchants atmillions of different points of sale, to be routed through theinfrastructure to the appropriate transaction processing servers 612 forprocessing. The payment rails may be such that a general purposecomputing device may be unable to properly format or submitcommunications to the rails, without specialized programming and/orconfiguration. Through the specialized purposing of a computing device,the computing device may be configured to submit transaction data to theappropriate entity (e.g., a gateway processor 608, acquiring financialinstitution 610, etc.) for processing using this advanced network, andto quickly and efficiently receive a response regarding the ability fora consumer 604 to fund the payment transaction.

Computer System Architecture

FIG. 7 illustrates a computer system 700 in which embodiments of thepresent disclosure, or portions thereof, may be implemented ascomputer-readable code. For example, the mobile computing device 102 ofFIG. 1 may be implemented in the computer system 700 using hardware,software, firmware, non-transitory computer readable media havinginstructions stored thereon, or a combination thereof and may beimplemented in one or more computer systems or other processing systems.Hardware, software, or any combination thereof may embody modules andcomponents used to implement the methods of FIGS. 3A, 3B, 5, and 6.

If programmable logic is used, such logic may execute on a commerciallyavailable processing platform configured by executable software code tobecome a specific purpose computer or a special purpose device (e.g.,programmable logic array, application-specific integrated circuit,etc.). A person having ordinary skill in the art may appreciate thatembodiments of the disclosed subject matter can be practiced withvarious computer system configurations, including multi-coremultiprocessor systems, minicomputers, mainframe computers, computerslinked or clustered with distributed functions, as well as pervasive orminiature computers that may be embedded into virtually any device. Forinstance, at least one processor device and a memory may be used toimplement the above described embodiments.

A processor unit or device as discussed herein may be a singleprocessor, a plurality of processors, or combinations thereof. Processordevices may have one or more processor “cores.” The terms “computerprogram medium,” “non-transitory computer readable medium,” and“computer usable medium” as discussed herein are used to generally referto tangible media such as a removable storage unit 718, a removablestorage unit 722, and a hard disk installed in hard disk drive 712.

Various embodiments of the present disclosure are described in terms ofthis example computer system 700. After reading this description, itwill become apparent to a person skilled in the relevant art how toimplement the present disclosure using other computer systems and/orcomputer architectures. Although operations may be described as asequential process, some of the operations may in fact be performed inparallel, concurrently, and/or in a distributed environment, and withprogram code stored locally or remotely for access by single ormulti-processor machines. In addition, in some embodiments the order ofoperations may be rearranged without departing from the spirit of thedisclosed subject matter.

Processor device 704 may be a special purpose or a general purposeprocessor device specifically configured to perform the functionsdiscussed herein. The processor device 704 may be connected to acommunications infrastructure 706, such as a bus, message queue,network, multi-core message-passing scheme, etc. The network may be anynetwork suitable for performing the functions as disclosed herein andmay include a local area network (LAN), a wide area network (WAN), awireless network (e.g., WiFi), a mobile communication network, asatellite network, the Internet, fiber optic, coaxial cable, infrared,radio frequency (RF), or any combination thereof. Other suitable networktypes and configurations will be apparent to persons having skill in therelevant art. The computer system 700 may also include a main memory 708(e.g., random access memory, read-only memory, etc.), and may alsoinclude a secondary memory 710. The secondary memory 710 may include thehard disk drive 712 and a removable storage drive 714, such as a floppydisk drive, a magnetic tape drive, an optical disk drive, a flashmemory, etc.

The removable storage drive 714 may read from and/or write to theremovable storage unit 718 in a well-known manner. The removable storageunit 718 may include a removable storage media that may be read by andwritten to by the removable storage drive 714. For example, if theremovable storage drive 714 is a floppy disk drive or universal serialbus port, the removable storage unit 718 may be a floppy disk orportable flash drive, respectively. In one embodiment, the removablestorage unit 718 may be non-transitory computer readable recordingmedia.

In some embodiments, the secondary memory 710 may include alternativemeans for allowing computer programs or other instructions to be loadedinto the computer system 700, for example, the removable storage unit722 and an interface 720. Examples of such means may include a programcartridge and cartridge interface (e.g., as found in video gamesystems), a removable memory chip (e.g., EEPROM, PROM, etc.) andassociated socket, and other removable storage units 722 and interfaces720 as will be apparent to persons having skill in the relevant art.

Data stored in the computer system 700 (e.g., in the main memory 708and/or the secondary memory 710) may be stored on any type of suitablecomputer readable media, such as optical storage (e.g., a compact disc,digital versatile disc, Blu-ray disc, etc.) or magnetic tape storage(e.g., a hard disk drive). The data may be configured in any type ofsuitable database configuration, such as a relational database, astructured query language (SQL) database, a distributed database, anobject database, etc. Suitable configurations and storage types will beapparent to persons having skill in the relevant art.

The computer system 700 may also include a communications interface 724.The communications interface 724 may be configured to allow software anddata to be transferred between the computer system 700 and externaldevices. Exemplary communications interfaces 724 may include a modem, anetwork interface (e.g., an Ethernet card), a communications port, aPCMCIA slot and card, etc. Software and data transferred via thecommunications interface 724 may be in the form of signals, which may beelectronic, electromagnetic, optical, or other signals as will beapparent to persons having skill in the relevant art. The signals maytravel via a communications path 726, which may be configured to carrythe signals and may be implemented using wire, cable, fiber optics, aphone line, a cellular phone link, a radio frequency link, etc.

The computer system 700 may further include a display interface 702. Thedisplay interface 702 may be configured to allow data to be transferredbetween the computer system 700 and external display 730. Exemplarydisplay interfaces 702 may include high-definition multimedia interface(HDMI), digital visual interface (DVI), video graphics array (VGA), etc.The display 730 may be any suitable type of display for displaying datatransmitted via the display interface 702 of the computer system 700,including a cathode ray tube (CRT) display, liquid crystal display(LCD), light-emitting diode (LED) display, capacitive touch display,thin-film transistor (TFT) display, etc.

Computer program medium and computer usable medium may refer tomemories, such as the main memory 708 and secondary memory 710, whichmay be memory semiconductors (e.g., DRAMs, etc.). These computer programproducts may be means for providing software to the computer system 700.Computer programs (e.g., computer control logic) may be stored in themain memory 708 and/or the secondary memory 710. Computer programs mayalso be received via the communications interface 724. Such computerprograms, when executed, may enable computer system 700 to implement thepresent methods as discussed herein. In particular, the computerprograms, when executed, may enable processor device 704 to implementthe methods illustrated by FIGS. 3A, 3B, 5, and 6, as discussed herein.Accordingly, such computer programs may represent controllers of thecomputer system 700. Where the present disclosure is implemented usingsoftware, the software may be stored in a computer program product andloaded into the computer system 700 using the removable storage drive714, interface 720, and hard disk drive 712, or communications interface724.

The processor device 704 may comprise one or more modules or enginesconfigured to perform the functions of the computer system 700. Each ofthe modules or engines may be implemented using hardware and, in someinstances, may also utilize software, such as corresponding to programcode and/or programs stored in the main memory 708 or secondary memory710. In such instances, program code may be compiled by the processordevice 704 (e.g., by a compiling module or engine) prior to execution bythe hardware of the computer system 700. For example, the program codemay be source code written in a programming language that is translatedinto a lower level language, such as assembly language or machine code,for execution by the processor device 704 and/or any additional hardwarecomponents of the computer system 700. The process of compiling mayinclude the use of lexical analysis, preprocessing, parsing, semanticanalysis, syntax-directed translation, code generation, codeoptimization, and any other techniques that may be suitable fortranslation of program code into a lower level language suitable forcontrolling the computer system 700 to perform the functions disclosedherein. It will be apparent to persons having skill in the relevant artthat such processes result in the computer system 700 being a speciallyconfigured computer system 700 uniquely programmed to perform thefunctions discussed above.

Techniques consistent with the present disclosure provide, among otherfeatures, systems and methods for initiating a time- andgeographic-based electronic transaction. While various exemplaryembodiments of the disclosed system and method have been described aboveit should be understood that they have been presented for purposes ofexample only, not limitations. It is not exhaustive and does not limitthe disclosure to the precise form disclosed. Modifications andvariations are possible in light of the above teachings or may beacquired from practicing of the disclosure, without departing from thebreadth or scope.

What is claimed is:
 1. A method for initiating a time- andgeographic-based electronic transaction, comprising: storing, in amemory of a mobile computing device of a consumer, payment details,wherein the payment details comprise a structured data set includingdata associated with a transaction account suitable for use in fundingan electronic transaction; detecting, by the mobile computing device,entry of the mobile computing device into a payment zone, wherein saidpayment zone is a geofenced area defined by a geographic area; upondetection of entry of the mobile computing device into the payment zone,transmitting, by a transmitting device of the mobile computing device,an entry detection notification to a computing device of a merchantsystem; registering, by a timing module of the mobile computing device,a first timestamp associated with the entry of the mobile computingdevice into the payment zone; detecting, by the mobile computing device,exit of the mobile computing device from the payment zone; registering,by the timing module of the mobile computing device, a second timestampassociated with the exit of the mobile computing device from the paymentzone; transmitting, by the transmitting device of the mobile computingdevice, a first exit notification to the computing device of themerchant system, wherein the first exit notification includes the secondtimestamp; calculating, by a calculation module of the mobile computingdevice, a transaction amount based on at least an elapsed amount of timebetween the first timestamp and the second timestamp and a payment rate;and electronically transmitting, by a transmitting device of the mobilecomputing device, to the merchant system, the calculated transactionamount and payment details stored in the memory of the mobile computingdevice.
 2. The method of claim 1, further comprising: storing, in thememory of the mobile computing device, the payment rate.
 3. The methodof claim 1, further comprising: transmitting, by the transmitting deviceof the mobile computing device, a second exit notification, wherein thesecond exit notification is transmitted upon exit of the mobilecomputing device from a second payment zone; and registering, by thetiming module of the mobile computing device, a third timestampassociated with the mobile computing device exiting the second paymentzone, wherein the transaction amount is further based on a secondelapsed amount of time between the second timestamp and the thirdtimestamp and a second payment rate.
 4. The method of claim 3, whereinthe second payment rate is equivalent to the payment rate.
 5. A systemfor initiating a time- and geographic-based electronic transaction,comprising: a transmitting device of a mobile computing device of aconsumer; a calculation module of the mobile computing device of theconsumer; a memory, of the mobile computing device of the consumer,configured to store payment details, wherein the payment details includea structured data set including data associated with a transactionaccount suitable for use in funding an electronic transaction; and aprocessing device, of the mobile computing device, configured to detectentry of the mobile computing device into a payment zone, wherein saidpayment zone is a geofenced area defined by a geographic area; whereinthe transmitting device, of the mobile computing device, is furtherconfigured to transmit an entry detection notification to a computingdevice of a merchant system, and wherein the system further comprises: atiming module, of the mobile computing device, configured to register afirst timestamp associated with the entry of the mobile computing deviceinto the payment zone; wherein the processing device, of the mobilecomputing device, is further configured to detect exit of the mobilecomputing device from the payment zone, the timing module, of the mobilecomputing device, is further configured to register a second timestampassociated with the exit of the mobile computing device from the paymentzone, the transmitting device, of the mobile computing device, isconfigured to electronically transmit, to the merchant system, thecalculated transaction amount and payment details.
 6. The system ofclaim 5, wherein the memory of the mobile computing device is furtherconfigured to store the payment rate.
 7. The system of claim 5, whereinthe transmitting device, of the mobile computing device, is furtherconfigured to transmit a second exit notification, to the merchantsystem, wherein the second exit notification is transmitted upon exit ofthe mobile computing device from a second payment zone, the timingmodule, of the mobile computing device, is further configured toregister a third timestamp associated with the mobile computing deviceexiting the second payment zone, and the transaction amount is furtherbased on a second elapsed amount of time between the second timestampand the third timestamp and a second payment rate.
 8. The system ofclaim 7, wherein the second payment rate is equivalent to the paymentrate.